Asia and Global Semiconductor and Tech Research

Andrew Lu

Thematic (Sector/Industry)

<ul>
<li>During MOI correction period, global semi equipment and manufacturing vendors might under-perform semi product companies on sales/earnings and share price performance in next 6 months given utilization remains below 80%.</li>
<li>A healthy MOI correction in PC/smartphone semi might result in global logic MOI to fall to 3.7-3.8 months in 3Q23, down 15% q/q and 8% y/y, heading to historical low. </li>
<li>China fabless reduced MOI to 6.4 months in 3Q23, down 16% q/q and 26% y/y. Although 2x over 3.5 months low, we expect 4-5 months in future due to restrictions.</li>
</ul>


During MOI correction period, global semi equipment and manufacturing vendors might under-perform semi product companies on sales/earnings and share price performance in next 6 months given utilization remains below 80%.
A healthy MOI correction in PC/smartphone semi might result in global logic MOI to fall to 3.7-3.8 months in 3Q23, down 15% q/q and 8% y/y, heading to historical low. 
China fabless reduced MOI to 6.4 months in 3Q23, down 16% q/q and 26% y/y. Although 2x over 3.5 months low, we expect 4-5 months in future due to restrictions.


More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction

Equity Long-Short, Semiconductors, Fabricated Knowledge

Douglas O'Laughlin

Equity Long-Short, Semiconductors

Fabricated Knowledge

Learn more about the world's most important manufactured product. Meaningful insight, timely analysis, and an occasional investment idea.

Equity Bottom-Up

<ul><li>KLA had a rare miss. The guidance was a bit light for the inspection execution machine.</li><li>KLA rarely misses and is by far the best financially managed of the large-cap semicap companies.</li><li>KLA reports Q2 EPS $6.16 ex-items vs FactSet $5.91</li></ul>

KLA had a rare miss. The guidance was a bit light for the inspection execution machine.KLA rarely misses and is by far the best financially managed of the large-cap semicap companies.KLA reports Q2 EPS $6.16 ex-items vs FactSet $5.91

KLA & LaserTec, AMD, Hyperscaler Capex, SK Hynix, SWKS and QRVO, WOLF, MCHP

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Skyworks Solutions, Inc. reported third quarter fiscal 2026 revenue of $935 million, exceeding the midpoint of guidance, with non-GAAP diluted earnings per share (EPS) of $1.08, also above expectations by $0.05.</li><li>Mobile represented 57% of total revenue, buoyed by solid demand from the company’s largest mobile customer and successful new product ramps at a significant Android customer.</li><li>Broad markets accounted for 43% of sales and grew 8% year-over-year, driven by Wi-Fi, data center, and automotive segments, which collectively grew 15%.</li></ul>

Skyworks Solutions, Inc. reported third quarter fiscal 2026 revenue of $935 million, exceeding the midpoint of guidance, with non-GAAP diluted earnings per share (EPS) of $1.08, also above expectations by $0.05.Mobile represented 57% of total revenue, buoyed by solid demand from the company’s largest mobile customer and successful new product ramps at a significant Android customer.Broad markets accounted for 43% of sales and grew 8% year-over-year, driven by Wi-Fi, data center, and automotive segments, which collectively grew 15%.

Skyworks Solutions Goes All-In On Qorvo To Build An RF Powerhouse!

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a> is looking to raise around US$30bn via a new share issue to back ADRs listed on the NASDAQ.</li>
<li>The ADR to local share ratio is 10:1 and the ADRs are expected to start trading in the second half of July.</li>
<li>There will be passive buying from multiple index trackers and that will mop up a significant amount of the new share offering.</li>
</ul>



SK Hynix (000660 KS) is looking to raise around US$30bn via a new share issue to back ADRs listed on the NASDAQ.
The ADR to local share ratio is 10:1 and the ADRs are expected to start trading in the second half of July.
There will be passive buying from multiple index trackers and that will mop up a significant amount of the new share offering.


SK Hynix (000660 KS; SKHY US) ADR Issue: Large Index Flows & Potential Timing

<ul><li>Skyworks Solutions, Inc. reported second-quarter fiscal 2026 revenue of $944 million, surpassing the high end of its guidance by approximately $20 million, with diluted earnings per share of $1.15, exceeding guidance by $0.05.</li><li>The financial performance benefited from stronger-than-expected demand in both mobile and broad markets, with a revenue split of about 58% mobile and 42% broad markets.</li><li>Broad market segments including WiFi, data center, and automotive collectively grew 30% year-over-year, marking the ninth consecutive quarter of growth in these areas.</li></ul>

Skyworks Solutions, Inc. reported second-quarter fiscal 2026 revenue of $944 million, surpassing the high end of its guidance by approximately $20 million, with diluted earnings per share of $1.15, exceeding guidance by $0.05.The financial performance benefited from stronger-than-expected demand in both mobile and broad markets, with a revenue split of about 58% mobile and 42% broad markets.Broad market segments including WiFi, data center, and automotive collectively grew 30% year-over-year, marking the ninth consecutive quarter of growth in these areas.

Skyworks Solutions' $1 Billion Android Win: Can RF Complexity Offset Mobile Pressure?

United States

Skyworks Solutions, Inc., a wireless semiconductor company, designs and manufactures radio frequency and complete semiconductor system solutions for mobile communications applications.  The Company provides front-end modules, radio frequency subsystems, and system solutions to wireless handset and infrastructure customers worldwide.

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Skyworks Solutions (SWKS US)

More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction

More Signs of Fab Utilization Recovery Starting Mid-2024 Post Current MOI Correction. During the period, global semi equipment and manufacturing...

Andrew Lu

KLA & LaserTec, AMD, Hyperscaler Capex, SK Hynix, SWKS and QRVO, WOLF, MCHP

Another week of earnings, with KLA having a rare miss and the guidance being a bit light for the inspection execution machine.

Fabricated Knowledge

Skyworks Solutions Goes All-In On Qorvo To Build An RF Powerhouse!

Skyworks Solutions, Inc. reported third quarter fiscal 2026 revenue of $935 million, exceeding the midpoint of guidance, with non-GAAP diluted...

Baptista Research

SK Hynix (000660 KS; SKHY US) ADR Issue: Large Index Flows & Potential Timing

Hynix is looking to raise US$30bn and list on the NASDAQ. Passive buying will mop up around 30% of the issue with smaller flows at the time of...

Brian Freitas

Skyworks Solutions' $1 Billion Android Win: Can RF Complexity Offset Mobile Pressure?

Skyworks Solutions, Inc. reported second-quarter fiscal 2026 revenue of $944 million, surpassing the high end of its guidance by approximately $20...

Baptista Research

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